PARAMOUNT COMM 2022-23 Annual Report Analysis

Fri, 31 Mar

PARAMOUNT COMM has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PARAMOUNT COMM Income Statement Analysis

• Operating income during the year rose 37.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 133.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.0% in FY23 as against 3.5% in FY22.
• Depreciation charges decreased by 3.0% and finance costs increased by 12.0% YoY, respectively.
• Other income grew by 339.4% YoY.
• Net profit for the year grew by 482.2% YoY.
• Net profit margins during the year grew from 1.4% in FY22 to 6.0% in FY23.

PARAMOUNT COMM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,809	7,965	37.1%
Other income	Rs m	37	164	339.4%
Total Revenues	Rs m	5,847	8,129	39.0%
Gross profit	Rs m	204	478	133.9%
Depreciation	Rs m	95	93	-3.0%
Interest	Rs m	64	72	12.0%
Profit before tax	Rs m	82	478	482.2%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	82	478	482.2%
Gross profit margin	%	3.5	6.0
Effective tax rate	%	0.0	0.0
Net profit margin	%	1.4	6.0

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PARAMOUNT COMM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 937 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -15.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY22, a fall of 28.6%.
• Current assets rose 11% and stood at Rs 4 billion, while fixed assets fell 8% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 5%.

PARAMOUNT COMM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,017	2,499	23.9
Current Liabilities	Rs m	1,106	937	-15.3
Long-term Debt	Rs m	1,573	1,123	-28.6
Total Liabilities	Rs m	4,810	5,039	4.8
Current assets	Rs m	3,306	3,654	10.5
Fixed Assets	Rs m	1,504	1,385	-7.9
Total Assets	Rs m	4,810	5,039	4.8

PARAMOUNT COMM Cash Flow Statement Analysis

• PARAMOUNT COMM's cash flow from operating activities (CFO) during FY23 stood at Rs 111 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -163 million, an improvement of 1,426.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 218 million, an improvement of 212% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 166 million from the Rs -59 million net cash flows seen during FY22.

PARAMOUNT COMM Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	146	111	-24.2%
Cash Flow from Investing Activities	Rs m	-11	-163	-
Cash Flow from Financing Activities	Rs m	-195	218	-
Net Cash Flow	Rs m	-59	166	-

Current Valuations for PARAMOUNT COMM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 31.2, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	29.9	41.0
TTM Earnings per share	Rs	0.4	2.5
Diluted earnings per share	Rs	0.3	1.7
Price to Cash Flow	x	15.4	9.3
TTM P/E ratio	x	33.2	18.3
Price / Book Value ratio	x	1.5	2.1
Market Cap	Rs m	3,092	5,318
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PARAMOUNT COMM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY23, from 3.0x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 7.7x during FY23, from 2.3x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 19.1% during FY23, from 4.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 15.2% during FY23, from 4.1% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.9% during FY23, from 3.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.0	3.9
Debtors’ Days	Days	1,091	773
Interest coverage	x	2.3	7.7
Debt to equity ratio	x	0.8	0.4
Return on assets	%	3.0	10.9
Return on equity	%	4.1	19.1
Return on capital employed	%	4.1	15.2

To see how PARAMOUNT COMM has performed over the last 5 years, please visit here.

PARAMOUNT COMM Share Price Performance

Over the last one year, PARAMOUNT COMM share price has moved up from Rs 9.8 to Rs 31.2, registering a gain of Rs 21.4 or around 219.8%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for PARAMOUNT COMM and quarterly results for PARAMOUNT COMM)